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EU readies retaliatory tariffs to secure better trade deal with Trump

German chancellor backs more muscular approach ahead of July talks deadline

The EU must make a “credible threat” of retaliation in Donald Trump’s trade war if it wants to get a good deal, a senior official has warned ahead of a looming talks deadline.

Bjoern Seibert, the European Commission president’s chief of staff, told the bloc’s ambassadors after the G7 summit in Canada last week that the prospect of a strong response would help convince the US president to reduce stiff tariffs on the EU, according to two EU officials.

German Chancellor Friedrich Merz signalled that his government would back a more muscular approach. “We’re ready to use a variety of options if there is no deal. We can and we will defend our interests,” he told the Bundestag on Tuesday.

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